Verizon eyes $100 billion bid for Vodafone’s Wireless stake

By Soyoung Kim and Kate Holton – The two sources said Verizon was considering a 50:50 cash and stock bid for the 45 percent stake it does not already own, an asset it has long coveted but that Vodafone will take some persuading to give up. It has not put a proposal to Vodafone yet but has hired both banking and legal advisers for a possible offer.

“The tax problem has always been the issue. If a way can be found around that, then it is highly likely that a deal will be done,” the top-15 investor said. more> http://tinyurl.com/bc9owmy

Verizon beats estimates and raises Vodafone pressure

By Sinead Carew – Verizon Communications Inc posted a higher-than-expected quarterly profit on the performance of its wireless business, which reined in costs without slowing growth.

Verizon also ramped up the pressure on Vodafone Group Plc, which owns 45 percent of the Verizon Wireless unit.

“It just feels like they’re tightening the circle around their customers,” Evercore analyst Jonathan Schildkraut said, referring to Verizon’s ability to retain customers and add more devices through its data share plans. more> http://tinyurl.com/cw4t6gc

Related>

• Verizon rakes in wireless service fees in first quarter; shares hit 12-year high, Associated Press/Washington Post
• Verizon’s new phone upgrade policy draws scrutiny, Roger Cheng, CNET News
• iPhone Activations Rise 25% at Verizon, Account for 55% of New Smartphones, Eric Slivka, Mac Rumors
• Wireless Fees Drive Verizon’s Earnings Beat, CNBC

Vodafone vs Verizon -a battle of attrition

By Richard Blackden – On February 11, 2000, Vodafone sealed the then largest takeover in corporate history with its £112bn capture of German rival Mannesmann.

While Vodafone and Verizon have jockeyed for position over the future of Verizon Wireless since its creation, it is hard to find anyone who disputes that the American company now enjoys the stronger hand. more> http://tinyurl.com/d3rzxqx

Vodafone shares drop after Verizon rules out takeover

By Kate Holton – Shares in Vodafone (VOD.L) fell on Wednesday (Apr 3) after Verizon Communications (VZ.N) ruled out a full takeover, turning the focus yet again to whether the two telecom giants can do a deal over their Verizon Wireless joint venture.

“As Verizon has said many times, it would be a willing purchaser of the 45 percent stake that Vodafone holds in Verizon Wireless,” it said. “It does not, however, currently have any intention to merge with or make an offer for Vodafone, whether alone or in conjunction with others.” more> http://tinyurl.com/cqd7rt5

Implications Of The Deal Between Vodafone And Verizon

Alpha Hunter – Verizon Wireless is the largest mobile network operator in the US. It provides wireless services to 115.78 million subscribers and was able to add 2.442 million subscribers to its network in the 4th Quarter of 2012,

Verizon Communications (VZ) is a provider of communication, information, entertainment products and services to consumers, businesses and governmental agencies. The company currently operates in two segments, Wireless and Wireline. In the wireless segments the company primarily operates under the brand name of Verizon Wireless and this segment contributes to more than 66% of the company’s revenues and a large portion of the company’s Operating Income.

As the company’s wireline segment continue to contract, is becoming more dependent on Verizon Wireless.

Vodafone provides voice and data communication services to both consumers and businesses and is one of the largest telecom companies in the world. VOD has significant presence in Europe, Middle East, Africa, Asia Pacific region and the United States. The company has achieved a stable growth in revenues and service subscribers over the years. more> http://tinyurl.com/bu8m664

Related>

• No wonder Vodafone investors are excited: Verizon deal would be the big one, Nils Pratley, guardian.co.uk
• Should Vodafone Sell Verizon Or Should Verizon Buy Vodafone? Tim Worstall, Forbes
• Vodafone’s Colao scans Verizon for U.S. solution, Kate Holton, Chris Vellacott and Sinead Carew, Reuters